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HomeMy WebLinkAbout25A - AGMT - HERITAGE VILLAGE INCLUSIONARYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 5, 2016 liliill' INCLUSIONARY HOUSING AGREEMENT WITH HERITAGE VILLAGE OC, LLC FOR THE HERITAGE APARTMENTS {STRATEGIC PLAN NO. 5, 313} CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: F-IT24007MI-11) 0 As Recommended ® As Amended © Ordinance on I" Reading ❑ Ordinance on 2nd Reading ® Implementing Resolution Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an Inclusionary Housing Agreement with Heritage Village OC, LLC for The Heritage Apartments, in an amount not to exceed $9,695,725.60, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The Housing Opportunity Ordinance ( "Ordinance ") encourages the development of affordable housing by requiring the inclusion of affordable units within developments that involve either an increase in the density otherwise available under applicable zoning and development standards; a change in land use designation from a zoning regulation that does not permit residential uses to one that does permit residential uses; or the conversion of rental units to condominium ownership. This ordinance applied to all projects entitled after November 2011. Developers can pay an in -lieu fee based on the habitable square foot of the project to satisfy the Ordinance requirements. Heritage Village OC, LLC, developer of The Heritage Apartments project located at 2001 E. Dyer Road (Exhibit 1), will comply with the Housing Opportunity Ordinance by paying an in -lieu fee of $9.35 per habitable square foot in the total amount of $9,695,725.60. The developer has been working with staff to complete the documents required by the Housing Opportunity Ordinance. The Inclusionary Housing Agreement (Exhibit 2) satisfies the inclusionary housing requirement of the project and is consistent with the standards set forth in the Ordinance. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #3 (Facilitate diverse housing opportunities and support 25A -1 Inclusionary Housing Agreement — Heritage Village OC, LLC April 5, 2016 Page 2 efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy B (Ensure compliance with the City's Housing Opportunity Ordinance by requiring rental and ownership housing projects that meet specified criteria provide a minimum of 15% affordable units). FISCAL IMPACT It is anticipated that funds in the amount of $9,695,725,60 may be received in Fiscal Year 2016/17 when the developer pulls permits for the project. Upon receipt, the revenues will be deposited into the Inclusionary Housing Fund revenue account (no. 41718002- 57896). Kelly Reenders Executive Director Community Development Agency Exhibits: 1. Location Map 2. Inclusionary Housing Agreement 3. Developer Input Letter NV /JB APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez 51� Executive Director Finance and Management Services Agency 25A -2 THE HERITAGE PROJECT 2001 E. DYER STREET EXHIBIT 1 25A -3 £ Flora St: 9ejhi'�u�k EF F Central Ave -Knni L4 Central _E Adam, St -' EAdar S C i 71,»'4._ E m w 'tea+,£ eiCl4ti AV2:: ig 5t � U' .F Dyer it�9k�ai WD r Rd C Dyer Rd . 7 nn € Mon Ave E Nta, A, y ti v � 3 bribe e'k 2 F rk e A NX C%anhuie Avz" � 1'CWumhtne Ave. ^ Li' Npinz Ava w. V IVit _ FMacArdlu ow 2001 E. DYER STREET EXHIBIT 1 25A -3 ark C � £tt 5f mm. Dyer i 71,»'4._ 'tea+,£ ig 5t .F Dyer it�9k�ai `' 11F r 2001 E. DYER STREET EXHIBIT 1 25A -3 25A -4 r • -r r 1 City of Santa Ana 20 Civic Center Plaza Santa Ana, California 92701 Attention: City Clerk To be recorded without fee, (Space Above This Line For Recorder's Use Only) (Government Code, §§ 6103 and 27383) INCLUSIONARY HOUSING AGREEMENT FOR PAYMENT OF IN -LIEU FEE THIS INCLUSIONARY HOUSING AGREEMENT is dated as of April 5, 2016, by and between the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, and Heritage Village OC, LLC, a Delaware limited liability company ( "Developer "). RECITALS A. The City's Housing Opportunity ( "Ordinance ") was originally adopted by the City Council on November 28, 2011 and is codified in Article XVIII.1 Section 41 —1900 of the City's Municipal Code. The Ordinance was amended by the City Council on September 1, 2015 (Ordinance No. NS- 2881). B. The Developer is the fee owner of the Property located at 2001 E Dyer Road, Santa Ana, California. C. The Developer desires to, at the Developer's sole cost and expense, develop a one thousand two hundred and twenty one (1,221) unit Project on the Property. D. On October 12, 2015 the Planning Commission recommended approval, with the City Council affirming the Commission's action and voted to adopt a resolution and ordinances approving the project on February 3, 2016. Incluslonary Housing Agreement - In -Lieu Fee Payment EXH IBIT 2 Page 1 City of Santa Ana 25A -5 The Council actions included the certification of Final EIR No. 2015 -01, Amendment Application No. 2014 -4, Development Agreement No. 2015 -3, General Plan Amendment No. 2015 -3 and Vesting Tentative Tract Map No. 2015 -3, which set forth the approvals for the project. E. On February 29, 2016, the Program Director, acting on behalf of the City, approved an Inclusionary Housing Plan that was prepared by the Developer in accordance with the requirements imposed by the Ordinance and the Administrative Procedures Manual established by the City Council to implement the Ordinance requirements. F. This Inclusionary Housing Agreement, when fully executed by the City and the Developer and recorded, is intended to satisfy the requirement that the Developer enter into an Inclusionary Housing Agreement, as set forth in the Ordinance and the conditions to City Approvals, NOW, THEREFORE, in consideration of the mutual promises set forth in this Inclusionary Housing Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the City and the Developer, the Parties, agree as follows: 1 • • The following words, terms and phrases are used in this Inclusionary Housing Agreement, as follows, unless the particular context of usage of a word, term or phrase requires another interpretation. Administrative Procedures means the regulations promulgated by the Executive Director pursuant to the Ordinance. Administrative Procedures Manual is the Affordable Ownership Housing Administrative Procedures Manual — Developer Requirements dated January 2014, which has been prepared by the City for the Implementation and enforcement of the Ordinance. A copy of the Administrative Procedures Manual shall be maintained on file with the City, and shall be provided to each Developer of Inclusionary Units. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 2 City of Santa Ana 25A -6 California Health and Safety Code ( "HSC ") provides definitions of household income and affordable housing costs that are used in this Inclusionary Housing Agreement. City means the City of Santa Ana, California. City Approvals are defined as the entitlement approvals and the Inclusionary Housing Plan that must be approved by the Program Director prior to the issuance of building permits for the Project. City Council means the City of Santa Ana City Council. Default means the failure of a Party to perform any action or covenant required by this Inclusionary Housing Agreement within the time period provided herein following notice and opportunity to cure, as set forth in Article 3 — Section I of this Inclusionary Housing Agreement. Developer means the developer of the Project. Effective Date means the date on which this Inclusionary Housing Agreement is approved and executed by appropriate authorities of the Developer and the City; and this Inclusionary Housing Agreement is delivered to the Developer. Executive Director is the Executive Director of the Community Development Agency of the City. The Executive Director, or designee, has the ultimate authority to evaluate appeals submitted in relation to the Administrative Procedures. Exhibits means the exhibits to this Inclusionary Housing Agreement, which are listed in Article 1 - Section V. HCD means the California Department of Housing and Community Development. HUD means the United States Department of Housing and Urban Development. Inclusionary Housing Fund means a separate fund of the City which is codified in Article XVI11.1 Section 41 -1909 of the City's Municipal Code. The fund was established for the specific purpose of providing the City with funds to assist in the development of housing that is affordable to low and moderate income households. The allowable uses of Inclusionary Housing Funds, and the related reporting are described in Attachment I of the Administrative Procedures Manual. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 3 City of Santa Ana 25A-7 Inclusionary Housing Plan means a plan submitted for approval to the Program Director that details the manner in which the Inclusionary Housing obligations will be fulfilled by the Project. The Inclusionary Housing Plan form is presented in Attachment B of the Administrative Procedures Manual, and also attached as Exhibit 3 to this Inclusionary Housing Agreement. In -Lieu Fee refers to a fee that may be paid by the Property Owner in specific circumstances in lieu of providing Inclusionary Units within a Project. These circumstances are identified in Section II -A of the Administrative Procedures Manual. The In -Lieu Fee calculation worksheet is updated quarterly. The current Affordable Housing In -Lieu Fee calculation worksheet schedule is presented in Attachment J of the Administrative Procedures Manual. Ordinance means the Housing Opportunity Ordinance originally adopted by the City Council on November 28, 2011, and as amended by the City Council on September 1, 2015, in Ordinance No. NS -2881, which is codified in Article XVI11.1 Section 41 -1900 et seq. of the City's Municipal Code. Party and Parties mean the City and the Developer as parties to this Inclusionary Housing Agreement. Program Director has the day -to -day authority for making determinations related to the Ordinance and Administrative Procedures Manual. The Program Director will be appointed by the Executive Director. Project means the owner- occupied housing project proposed to be developed on the Property at the Developer's sole cost and expense. Property means the real property, as shown on Exhibit 2 attached to this Inclusionary Housing Agreement, on which the Project is to be developed, for which the legal description is provided in Exhibit 1 to this Inclusionary Housing Agreement. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 4 City of Santa Ana 25A -8 ARTICLE 1 PARTIES; REPRESENTATIONS AND WARRANTIES; EFFECTIVE DATE; RECITALS; AND EXHIBITS L Parties to this Inclusionary Housing Agreement -A. City. The City is a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California. The address of the City, for the purposes of this Inclusionary Housing Agreement, is: City of Santa Ana Community Development Agency 20 Civic Center Plaza, M -26 Santa Ana, California 92701 Attention: Program Director Facsimile Number: (714) 647 -6549 1 -13. Developer. The Developer is a Delaware limited liability company. The principal office and address of the Developer, for the purposes of this Inclusionary Housing Agreement, is: Developer Name: Heritage Village bC LLC Address: 1945 Port Chelsea Place City, State and Zip code: Newport Beach, CA 92660 Attention: Pam Sapetto 11. Developer Representations And Warranties The representations and warranties of the Developer contained in Article 1 — Section II shall be based upon the actual knowledge of the Developer as of the Effective Date, and are true and correct as of the Effective Date. The Inclusionary Housing Agreement - In -Lieu Fee Payment Page 5 City of Santa Ana 25A-9 Developer's liability for misrepresentation or breach of warranty, representation or covenant, wherever contained in this Inclusionary Housing Agreement, shall survive the execution and delivery of this Inclusionary Housing Agreement. The Developer hereby makes the following representations, covenants and warranties, and Developer acknowledges that the execution of this Inclusionary Housing Agreement by the City has been made in material reliance by the City on such covenants, representations and warranties: II -A, The Developer is a Delaware limited liability company, lawfully entitled to do business in the State of California and the City. The Developer has the legal right, power and authority to enter into this Inclusionary Housing Agreement and the instruments and documents referenced herein and to consummate the transaction contemplated hereby. The persons executing this Inclusionary Housing Agreement and the instruments referenced herein on behalf of the Developer hereby represent and warrant that such persons have the power, right and authority to bind the Developer. II -B. The Developer has taken all requisite action and obtained all requisite consents in connection with entering into this Inclusionary Housing Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party is required for the Developer's authorization to enter into this Inclusionary Housing Agreement, II -C. Neither the execution of this Inclusionary Housing Agreement nor the consummation of the transactions contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument, or other obligation to which the Developer is a party or by which the Developer may be bound, or to the best of the Developer's knowledge, under any law, statute, ordinance, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to the Developer or to the Property. II -D. This Inclusionary Housing Agreement is, and all agreements, instruments and documents to be executed by the Developer pursuant to this Inclusionary Housing Agreement shall be duly executed by, and to the best of the Developer's knowledge, are or shall be valid and legally Inclusionary Housing Agreement - In -lieu Fee Payment Page 6 City of Santa Ana 25A -10 binding upon the Developer and enforceable in accordance with their respective terms. III. Effective Date This Inclusionary Housing Agreement is dated April 5, 2016 for reference purposes only. This Inclusionary Housing Agreement shall not go into effect before the Effective Date. IV. Recitals The Recitals set forth above are true and correct. The Recitals are incorporated into this Inclusionary Housing Agreement in their entirety by this reference. V. Exhibit List The following is a list of the exhibits attached to this Inclusionary Housing Agreement. Each of the exhibits is incorporated by reference into the text of this Inclusionary Housing Agreement. Exhibit 1 Legal Description of Property Exhibit 2 Site Map Depicting Property and Zoning Designations Exhibit 3 Inclusionary Housing Plan Indusionary Housing Agreement - In -Lieu Fee Payment Page 7 City of Santa Ana 25A-1 1 ARTICLE 2 INCLUSIONARY HOUSING COVENANTS 1. Developer Compliance with the Ordinance The Developer acknowledges that the City has provided the Developer with copies of the Ordinance and the Administrative Procedures Manual. The Developer is familiar with the requirements of all the foregoing documents and shall ensure that the Project complies in all material respects with this Inclusionary Housing Agreement and the requirements set forth in all the foregoing documents. II. In -Lieu Fee The in -lieu fee is calculated based upon the sum total number of habitable square feet within the entire Project, as measured from the exterior walls of the residential units. This calculation does not include exterior hallways, common areas, landscape, open space, or exterior stairways. Based on preliminary calculations (which may be updated at the time of obtaining the first building permit related to the Project) the total habitable square feet within the Project is 1,036.976 square feet. In lieu of providing any Inclusionary Units, based upon the estimated square footage which may be updated while pulling the above - referenced building permit, the Developer shall pay to the City the estimated sum of $9,695,725.60 prior to obtaining the first building permit related to the Project. Inclusionary Housing Agreement - In-Lieu Fee Payment Page 8 City of Santa Ana 25A -12 ARTICLE 3 DEFAULTS AND REMEDIES 1. Default If either Party defaults with regard to any provision of this Inclusionary Housing Agreement, the non - defaulting Party shall serve written notice of such default upon the defaulting Party. If, after the service of written notice of such default, the defaulting Party does not cure such default within thirty (30) calendar days after service of the notice of default (or, if such cure reasonably takes longer than thirty (30) days, if such cure has not been commenced within the thirty (30) day period or is not diligently completed within a reasonable time, not to exceed an additional sixty (60) calendar days), the defaulting Party shall be in Default of the terms of this Inclusionary Housing Agreement, and shall be liable to the other Party for damages caused by such Default. Alternatively, the non - defaulting Party, at its option, may Institute an action for specific performance of the terms of this Inclusionary Housing Agreement, 11. Legal Actions In the event of a breach or potential breach of program requirements, in addition to any other rights or remedies, either Party may institute legal action to cure, correct or remedy any Default, to recover damages for any Default, or to obtain any other remedy consistent with the purposes of this Inclusionary Housing Agreement. 11 -A. The City's actions may include, but are not limited to, the following: 1. The following legal actions: a. Actions to enforce compliance with the program requirements and to enjoin any actions by the Developer that violate program requirements; b. Actions to disapprove, revoke or suspend any permit, including a Building Permit, Certificate of Occupancy or other discretionary approval; Inclusionary Housing Agreement - In -Lieu Fee Payment Page 9 City of Santa Ana 25A -1 3 C. Injunctive relief and damages; and d. Civil citations with monetary penalties for violations of the Inclusionary Housing Agreement. 2. All such restitution shall be made to the City. Any funds received by the City under this provision of this Inclusionary Housing Agreement shall be placed in the City's Inclusionary Housing Fund. II -Be The laws of the State of California shall govern the interpretation and enforcement of this Inclusionary Housing Agreement. II -C. In the event that any legal action is commenced by the Developer against the City, service of process on the City shall be made by personal service upon the Clerk of the City Council, or in such other manner as may be provided by law. II -D. In the event that any legal action is commenced by the City against the Developer, service of process shall be made by personal service on the Developer's designated agent at such address as may be specified in written notice to the City, or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. III. Rights and Remedies are Cumulative The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by the other Party. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 10 City of Santa Ana 25A -14 1 � / GENERAL PROVISIONS I. Notices, Demands and Communications Between the Parties Any and all notices, demands or communications submitted by any Party to another Party pursuant to, or required by, this Inclusionary Housing Agreement shall be proper if in writing and dispatched by messenger for immediate personal delivery, or by registered or certified United States mail, postage prepaid, return receipt requested, to the address of the City and Developer, as applicable, as designated in Article 1 — Section I of this Inclusionary Housing Agreement. Such written notices, demands and communications may be sent in the same manner to such other addresses as either Party may from time -to -time designate as provided in this Section. Any notice, demand or communication shall be deemed to be received by the addressee, on the day that it is personally delivered, if dispatched by messenger, or two (2) calendar days after it is placed in the United States mail. In addition to the submission of notices, demands or communications to the Parties via United States mail, copies of all notices shall also be delivered by facsimile to the facsimile numbers designated in Article 1 — Section I. II. Conflict of Interest No council member, official, contractor, consultant, attorney or employee of the City having any conflict of interest, direct or indirect, related to this Inclusionary Housing Agreement, or in the development of the Property, shall participate in any decision relating to this Inclusionary Housing Agreement. The Parties represent and warrant that they do not have knowledge of any such conflict of interest. III. Non - liability of City or City Officials and Employees No council member, official, contractor, consultant, attorney or employee of the City shall be personally liable to the Developer, any voluntary or involuntary successors and assignees, or any lender or other party holding any interest in the Property, in the event of any default or breach by the City, or for any amount Inclusionary Housing Agreement - In -Lieu Fee Payment Page 11 City of Santa Ana 25A-1 5 which may become due to the Developer or to its successors or assignees, or on any obligations arising under this Inclusionary Housing Agreement. IV. Indemnification The Developer agrees to indemnify and hold the City, and their officers, employees and agents, harmless from and against all damages, judgments, costs, expenses and fees arising from or related to any negligent or wrongful act or omission of the Developer in performing its obligations hereunder. The City agrees to indemnify and hold the Developer and its officers, employees and agents, harmless from and against all damages, judgments, costs expenses and fees arising from or related to any negligent or wrongful act or omission of the City in performing its obligations hereunder. V. No Waiver Failure to insist upon strict compliance with any of the terms, covenants, conditions and restrictions hereof on any one occasion shall not be deemed a waiver of such term, covenant, condition or restriction. Any waiver or relinquishment of rights or powers hereunder at any one time or more times shall not be deemed a waiver or relinquishment of such other rights or powers at any other time or times. VI.. Attorneys' Fees and Costs If either Party hereto files any action, or brings any action or proceeding against the other arising out this Inclusionary Housing Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and costs. The recovery shall be treated as an element of its costs of the suit, and not as damages. The amount of the recovery shall be fixed by the court in such action or proceeding, or in a separate action or proceeding brought to recover such attorneys' fees and costs. VII. Jurisdiction and Venue Any legal action or proceeding concerning this Inclusionary Housing Agreement shall be filed and prosecuted in the appropriate State of California court in Orange County, California. Each Party hereto irrevocably consents to the personal jurisdiction of that court. The City and the Developer each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or Inclusionary Housing Agreement - In -Lieu Fee Payment Page 12 City of Santa Ana 25A -16 jurisdiction, including without implied limitation, federal district court due to any of the following: 1. Any diversity of citizenship between the City and the Developer; or 2. The fact that the City is a party to such action or proceeding; or 3. That a federal question or federal right is involved or alleged to be Involved. Without limiting the generality of the foregoing, the Developer and the City specifically waive any rights provided to it pursuant to California Code of Civil Procedure 394. The Developer acknowledges that the provisions of this Article 3 — Section VII are material consideration to the City for its entry into this Inclusionary Housing Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum. VIII. Inspection of Books and Records To enforce its rights under this Inclusionary Housing Agreement, the City shall have the right at all reasonable times and upon reasonable advance notice, at the City's cost and expense, to inspect the books and records of the Developer that are not privileged, confidential, trade secrets or otherwise protected from disclosure and that pertain to the sale of the Inclusionary Units at the Property. Matters discovered by the City shall not be disclosed to third parties unless required by law, or unless otherwise resulting from or related to the pursuit of any remedies or the assertion of any rights of the City hereunder subject to, however, any right of the Developer to seek a protective order to prevent the disclosure of any confidential or privileged information. IX. Successors and Assigns This Inclusionary Housing Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. X. No Third Party Beneficiaries The performance of the City's and the Developer's respective obligations under this Inclusionary Housing Agreement are not intended to benefit any party other than the City or the Developer, except as expressly provided otherwise herein. No person or entity not a signatory to this Inclusionary Housing Agreement shall Incluslonary Housing Agreement - In -Lieu Fee Payment Page 13 City of Santa Ana 25A -1 7 have any rights or causes of action against any Party to this Inclusionary Housing Agreement as a result of that Party's performance or non - performance under this Inclusionary Housing Agreement, or for the enforcement of any provisions of this Agreement, except as expressly provided otherwise herein. XI. Entire Agreement This Inclusionary Housing Agreement integrates all of the terms and conditions mentioned herein or incidental hereto. This Inclusionary Housing Agreement supersedes all negotiations or previous agreement between the Parties with respect to all or any portion of the Property and the Project thereof. XII. Recordation The Developer and the City agree to permit recordation of this Inclusionary Housing Agreement, against the Property in the Office of the County Recorder of Orange County, California. The legal description for the Property is provided in Exhibit 1 to this Inclusionary Housing Agreement. 9MINUMMIAMIMI Except as set forth elsewhere, this Inclusionary Housing Agreement shall be terminated after payment of in -lieu fee to City upon pulling first building permit. Upon the termination of this Inclusionary Housing Agreement, the Developer shall have no further obligations or liability hereunder. The City and the Developer agree to promptly execute, acknowledge and deliver for recordation any documents that may be necessary to remove this Inclusionary Housing Agreement as encumbrance against title to any portion of the Property. Inclusionary Housing Agreement - In -Lieu Fee Payment Page 14 City of Santa Ana 25A -18 IN WITNESS WHEREOF, the Parties hereto have duly executed this Inclusionary Housing Agreement as of the dates set forth below. SIGNATURE PAGE TO INCLUSIONARY HOUSING AGREEMENT ATTEST: Maria Huizar, Clerk of the Council APPROVED AS TO LEGAL FORM: _.. By: el- Lisa Storck Assistant City Attorney CITY: CITY OF SANTA ANA A California Charter City and Municipal Corporation 1 Name: David Cavazos Its: City Manager Date: Inclusionary Housing Agreement - In -Lieu Fee Payment e Page 15 City of Santa Ana 25A -1 9 ►_ _ •_ TO INCLUSIONARY HOUSING AGREEMENT Heritage Village OC, LLC 0 M Name: Its: Date: M Name: Its: Inclusionary Housing Agreement - In -Lieu Fee Payment Page 16 City of Santa Ana 25A -20 Date: Inclusionary Housing Agreement - In -Lieu Fee Payment Page 17 City of Santa Ana 25A-21 0 • • - Inclusionary Housing Agreement— In -Lieu Fee Payment City of Santa Ana 25A -22 EXHIBIT A LELk DESMPTIDPI PAKE1, 2, A3 SHOVH Ohl rAHIB1T "e•2' ATTACHED FD LOT LIME AG414fldL9F 07 -013 RENTIND.dIDiE I I, 139: AS IIISTRUME,M M. SG -WO11 OF OFFICIAL RECOROT OF ORA,PIOE C'H1P17Y, GAUMP.NiA. E,.Qvl RrIOSF. 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BI CCIG4IECHOtI 'PffH OR WIN RE3FECF TO ME LAHO, N40117' EMP V'U,ftA RICTUS SHALE. BE RIPAPIAPI, Db3RLfq*' APPP.OPRIABH:, PERCCIATIHD'. PR&, IPR§. OP COTIMAI)NAL, BUT'VITHOUT. HUYIEVR, ,L9'( RIGHT 7'9 ETHER UPOPI THE SURFA.LE OF FHE WIG III ME F.'f- RrISEE OF SUC4 RICAT3, AS FZ31!R`,i BY THE If?YRIE COIAPAFTF IN bl—W RECOFDEO OCNRER 11, 1.11B LV ROCtL 4201, PAGE 114 GP OP;ICIAL RECORDS. Inp, tfi;n p..R a70vlPl -M mt i1n_G +t�tr: 25A -23 Indusionary Housing Agreement— In -Lieu Fee Payment City of Santa Ana 25A -24 ) ; ;! ( §(§ ; ! | }| .. \) � AA \)� � /\ {2 � ! t w } � ,t & 25A-25 \� /| \} \ \ / ([ Inclusionary Housing Agreement — In -Lieu Fee Payment City of Santa Ana 25A -26 Planning and Building Agency Planning Division 20 Civic Center Plaza P.O. Box 1088 (M -20) Santa Ana, CA 92702 (714) 647 -5804 .mmawkwAmam+"M wwm.santa- ana.org INCLUSIONARY HOUSING PLAN OWNER/APPLICANT INFORMATION Legal Owner Herita e Village OC LLC,- 714 425 -2851 Full name of Person, Firm or Corporation Area Code Phone Number 1945 Port Chelsea Place, Newport Beach,CA 92660 'Mailing i ) Address Area Code Fax Number Applicant. heritage Village OC LLC 1 714 1 425 -2851 cull name of Person, Firm or Corporation Area Code Phone Number 1945 Port Chelsea Place, Newport Beach,CA 92660 Mailing Address L �� Area Code Fax Number Contact Person Sapetto, Sapetto Real Estate Solutions psapetto�sapectorealestate.com Full name of Person, Fimi or Corporation Ematl address 18662 MacArthur Blvd, Suite 200 . Irvine, Ca 92612 Mailing Address ' -` --- 949 252 -0841 7( 14 ) 815 -7771 L----1 Area Code Phone Number Area Code Mobile Phone Number -� Area Code Fax Number • i i.... Project Address: 2001 E Dyer Rd, Santa Ana, CA Assessor Parcel Number(s): 430-211-13,430-221-01, 430- 221 -02 Total number of units proposed: 1221___ Number of Rental Units: _ 1221 Number of For Sale units: Number of 15% Inclusionary obligation: Identify the gross livable area of the proposed project (including private balconies, decks and patios).- 1,036,976 square feet Will the project be constructed in phases? __ X Yes No Is a density bonus being requested? Yes X No CITY APPROVALS (it appiloable) INCLUSIONARY HOUSING PLAN NO. ❑ APPROVE ❑ DENY pate: 1.PlanninglClerical- Cowrter Form &lFlOOepplfcetinn Page 1 of 4 1115 Signature: 25A -27 � u Select the applicable alternatives to indicate how the project will comply with the inclusionary housing requirement: On -site construction of inclusionary units X In -lieu fee payment for entire obligation' In -lieu fee payment for fractional unit Land dedication Note: For development projects with more than 20 units requesting in -lieu fee payment to fulfill their inclusionary obligation, "substantial evidence" that the cost of providing inclusionary units on site would substantially exceed the amount of the applicable in -lieu fee is to be provided with this application. Please complete the following table(s) as it applies to your project proposal: !4♦ r Number of Bedrooms Unit Size (Square Feet) Number of Market Rate Units .327 Number of Low Income Units Number of Very -Low Income Units Total Number of Units Percent of Total Units Studio .587 __7__ � .- 1 8 4— — 501 2 � 1121 -- 354 3 7.434. 334 i- 4 — — _- Total 849 1221 i If the calculation of the number of required inclusionary housing units results in a fraction, the developer has the option to (a) provide an additional inclusionary housing unit or (b) pay an In -Lieu Fee equal to the percentage represented by the fractional incluslonary housing unit multiplied by the applicable In -Lieu Fee SFlannintl \Clerical - Counter Forms \HOQapplicatian Page 2 of 4 7 /iv 25A -28 k f, Number of Bedrooms Studio Unit Size (Square Feet) Number of Market Rate Number of Moderate Income Unit Total Number of — Units Percent of Total Units 2 �..3 —.- —. 4 Total– -- Required Exhibits to the Inclusionary Housing Plan A. ❑ Narrative description of the entire project; E. ❑ Site plan that depicts the entire project (minimum '11° x 17 "); C. ❑ Depiction of the location of the inclusionary housing units; and D. ❑ If applicable, a phasing plan that provides for the proportionate number of the total inclusionary housing unit requirement to be built within each phase of the project. E. ❑ If applicable, provide the In -Lieu Calculation Summary for the project. B:PlanninglClerical- Counter Forms \HOOaNNlicaFron Page 3 of 4 I /i5 25A -29 • i / I hereby certify that 1 am the legally authorized owner of all property involved in this application or have been empowered to sign as the property owner on behalf of a corporation, partnership, business, etc., as evidenced by separate instrument attached herewith. I hereby grant to the applicant submitting this form full power to sign all documents related to this application, including any conditions or litigation measures as may be deemed necessary. I declare under penalty of perjury that the foregoing is true and correct. Executed on ([late) 11/20/15 at Los Angeles California Property Owner's Signature Property Owner's Printed Name Ryan Ogulnick e � I hereby certify that the statements furnished above and in the attached exhibits represent the data and information required for this initial evaluation and that the facts, statements and information presented are true and correct to the best of my knowledge and belief. Further, should the stated information be found false or insufficient, I agree to the return of this form for appropriate revisions, understanding the City of Santa Ana cannot process this form until all applicable information is corrected or provided by the applicant. I hereby certify that I have been legally authorized by the property owner to present this application and to sign on behalf of all documents related to this application, including any conditions or litigation measures as may be deemed necessary. Note: When the applicant is a corporation, partnership, business, etc., a separate document verifying the authorization to sign for such applicant is required. I declare under penalty of perjury that the foregoing is true and correct. Executed on (Date) Applicant's Signature Applicant's Printed Name at California S:PlanninglCierical- Counter Forms \HOOapplication Page 4 of 4 7175 25A -30 October 6, 2015 Kelly Reenders, Executive Director Community Development Agency 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702 Re: Heritage Village - In Lieu Fee Payment Dear Ms. Reenders: As you know, the Heritage project is in the process of obtaining entitlements and anticipated to be go before the Planning Commission on October 12, 2015. As part of the entitlements, the Heritage project is required to satisfy the City's inclusionary housing requirements pursuant to the Housing Opportunity Ordinance (HOO), as recently amended and adopted by the City Council on Tuesday, September 1, 2015. As part of the menu of options available under the HOO, we plan on paying an in lieu fee to satisfy the City's inclusionary housing requirements. As stipulated in the new HOO, the developer may provide input regarding what project the in lieu fees should be applied towards. We are writing to request that the in lieu fee payment for the Heritage project be applied towards the AMCAL Multi- Housing, Inc. (AMCAL) project located at 1440 East First Street in Santa Ana ( "First Street Apartments "). We request that the in lieu fee payment being made by the Heritage project be used to fund an important project for Santa Ana, namely the First Street Apartments Project. It is important to note that the First Street Apartments Project is a financially feasible transaction that will be built and financed within a timeframe that compliments the Heritage project. Given the progress made thus for on First Street Apartments, we see an opportunity to partner with AMCAL and fast track the development of affordable workforce rental housing in Santa Ana. AMCAL's successful track record is well known locally, including in Santa Ana. Vista del Rio, recently completed by AMCAL, is a successful award - winning project located in Santa Ana that represents the high level of quality and design that we want to see in the City. We have also meet with AMCAL and provided design and other input on the First Street Apartments Project and are very confident that it will be an attractive, well constructed project that will no doubt be an asset to the community. The Heritage project's benefits to the City and the community are noteworthy and include over 98,000 square feet of retail and office space, hundreds of new jobs and multi- EXHIBIT 3 1945 PORT Ctieve,I�Ia*41 BEACH • CA • 92660 GOMME millions of dollars annually to the City's general fund. We recognize an additional benefit to The Heritage is its ability to subsidize sufficient high- quality affordable housing in the surrounding community. We are confident First Street Apartments, which is located about 3 miles from the Heritage project, will help satisfy this important need. For the reasons set forth above, we strongly request that the City allocate the lieu fee payment for the Heritage project towards First Street Apartments, If you have any questions, please feel free to contact me directly at 3M508.4083. Sincerely, r �Ryan OgulKcok� Heritage Village Project 25A-32 CA 9?6bO